To determine Prepare journal entries of Industries S. Explanation a. Prepare journal entry to record summarize the total manufacturing costs applied to production in June. Account titles and Explanation Debit Credit Work in process inventory $160,000 Direct materials $90,000 Direct labor $30,000 Manufacturing overhead 40,000 (To record cost assigned to production) Table (1) Work in process inventory is a current asset, and it is increased. Therefore, debit work in process inventory account for $160,000. Direct materials are a current asset, and it is decreased. Therefore, credit direct materials account for $90,000. Direct labor is a current asset, and it is decreased. Therefore, credit direct labor account for $30,000. Manufacturing overhead is a component of stockholders’ equity , and it is increased. Therefore, credit manufacturing overhead account for $40,000. b. Prepare journal entry to record transfer completed units from work in process to the finished goods warehouse in June. Account titles and Explanation Debit Credit Finished goods inventory $160,000 Work in process inventory $160,000 (To record transfer of 20,000 units completed units to finished) Table (2) Finished goods inventory is a current asset, and it is increased. Therefore, debit finished goods inventory account for $160,000. Work in process inventory is a current asset, and it is decreased. Therefore, credit work in process inventory account for $160,000. c. Prepare journal entries to record sale of 16,000 units manufactured during the period and related cost of goods sold. Account titles and Explanation Debit Credit Accounts receivable $320,000 Sales $320,000 (To record sales of 16,000 units @ $20 per unit) Table (3) Account receivable is a current asset, and it is increased...

Connect Access Card for Financial and Managerial Accounting

18th Edition

ISBN: 9781260006476

Author: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello

Publisher: McGraw-Hill Education

See similar textbooks

Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing …

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In compari…

Videos

Question

Chapter 18, Problem 3E

To determine

Prepare journal entries of Industries S.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 18, Problem 2E

Chapter 18, Problem 4E

Students have asked these similar questions

The Activity-Based costs assigned to cost objects are based on what? Activity cost pools. Actual levels of spending. Actual levels of capacity usage. Planned levels of spending and capacity usage. The size of the cost object.

What is the setup cost per unit of pdodut A under costing system?

Answer? ? Financial accounting

Chapter 18 Solutions

Connect Access Card for Financial and Managerial Accounting

Ch. 18 - Prob. 1STQ Ch. 18 - 2. Which of the following businesses would most...Ch. 18 - 3. Nut House manufactures and sells jars of peanut...Ch. 18 - 4. Indicate which of the following phrases...Ch. 18 - 5. A production cost report contains which of the...Ch. 18 - 1. Why would a company use multiple cost...Ch. 18 - 2. What factors should be taken into account in...Ch. 18 - 3. Rodeo Drive Jewelers makes custom jewelry for...Ch. 18 - 4. Describe at least two products or production...Ch. 18 - 5. What are the four significant parts of the...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education

FINANCIAL ACCOUNTING

Accounting

ISBN:9781259964947

Author:Libby

Publisher:MCG

Accounting

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:Cengage Learning,

Accounting Information Systems

Accounting

ISBN:9781337619202

Author:Hall, James A.

Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...

Accounting

ISBN:9780134475585

Author:Srikant M. Datar, Madhav V. Rajan

Publisher:PEARSON

Intermediate Accounting

Accounting

ISBN:9781259722660

Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:9781259726705

Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:McGraw-Hill Education

SEE MORE TEXTBOOKS

Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY